Digirad Announces Changes to Board Personnel and Composition
Jeffrey E. Eberwein Named Chairman
POWAY, CA -- (Marketwire) -- 02/07/13 -- Digirad Corporation
(NASDAQ: DRAD) announced today R. King Nelson, former Chairman, and
Gerhard F. Burbach have tendered their resignations from the Board of
Directors after more than a decade of service to the Board and
management team at Digirad. Following the resignations, the board
made the determination to reduce the size of the board from eight to
six members, and Jeffrey E. Eberwein, a board member since April
2012, was appointed Chairman of the Board of Directors, effective
"On behalf of the shareholders and employees, we extend sincere
gratitude to King and Gary for their years of dedicated service to
Digirad and for their exceptional counsel over that period of time,"
said Eberwein. "Their guidance was pivotal as the Company managed its
way through a number of difficult external and economic factors."
Nelson, who was Chairman, had been a member of the Board since March
2004. He had also previously been a Director from 2000-2002. Burbach,
who is a former President and CEO of Digirad, had been a member of
the Board since October 2004.
"In keeping with the continuous focus on shareholder value and
corporate governance that was enhanced throughout 2012, we believe
that going forward a streamlined board can be more nimble and
economically beneficial to the Company while maintaining a broad
perspective from management, industry and shareholders," continued
Eberwein. "It is noteworthy that the majority of the current
directors were either nominated or suggested by the Company's largest
shareholders and have taken those board seats within the past year.
Needless to say, shareholder value is the top priority as the Company
embarks on strategies to move the Company in the right direction."
Eberwein has 20 years of financial sector experience including 16
years in investment management and 4 years in investment banking. He
brings to the Chairman role a wealth of Wall Street experience and an
intense focus on creating shareholder value. He was a Portfolio
Manager for 11 years, most recently at Soros Fund Management and
prior to that at Viking Global Investors and Cumberland Associates.
tion, Eberwein currently serves on the Board of Hope for New
York, a 501(c)(3) organization dedicated to serving the poor in New
York City. He earned an MBA from The Wharton School, University of
Pennsylvania and a BBA with High Honors from The University of Texas
Digirad is a leading provider of diagnostic imaging products, and
personnel and equipment leasing services. For more information,
please visit www.digirad.com. Digirad(R) is a registered trademark of
This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation Reform
Act of 1995. These include statements regarding our ability to
deliver value to customers, our actions to enhance our corporate
governance practices, and our desire to maximize stockholder value.
These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from the statements made, including the risks associated with changes
in business conditions, technology, customers' business conditions,
reimbursement, radiopharmaceutical shortages, economic outlook,
operational policy or structure, acceptance and use of Digirad's
camera systems and services, reliability, recalls, and other risks
detailed in Digirad's filings with the U.S. Securities and Exchange
Commission, including Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and other reports. Readers
are cautioned to not place undue reliance on these forward-looking
statements, which speak only as of the date hereof. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and Digirad undertakes no obligation to revise
or update the forward-looking statements contained herein.
Allen & Caron
Chief Executive Officer
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